Indonesia’s primary stock index, the Jakarta Composite Index (JCI), experienced a modest rise of 0.34% for the week ending July 24, buoyed by increased trading activity. This uptick occurred despite the persistent withdrawal of foreign investors and a backdrop of escalating global economic uncertainties.
The market capitalization of the Indonesia Stock Exchange saw an uptick, reaching Rp 10,870 trillion, while the average daily trading turnover witnessed a significant jump of 41%, climbing to Rp 19.76 trillion. However, foreign investors continued to offload Indonesian assets, with cumulative outflows totaling Rp 79.09 trillion for the year, signaling a cautious approach toward the nation’s market.
Market dynamics were influenced by a surge in global oil prices, driven by escalating tensions in the Middle East. Additionally, the introduction of new U.S. tariffs on imports from several countries, including a 10% tariff on select Indonesian products, added to the pressure on market sentiment.
The Indonesian Finance Ministry recognized the potential strain that rising oil prices could impose on the 2026 state budget. Nonetheless, the ministry reassured that Indonesia’s overall fiscal health remains stable, even as external challenges mount.